Recently Toys R us file for bankruptcy in the USA. The blame for this can be identified as Toys R us not being able to defend itself against growing competition from other retailers and online stores. Most notable Walmart and Amazon.

When Walmart starting selling toys in their stores people could pick up toys when they were doing their regular shopping, removing the need for them to go a speciality store. Toys R us did not give their customers a reason to come to their stores ie. they had no unique selling point to draw people in.

Toys R us was also very slow to cater for online customers, and many of their customers were drawn to large online retailers, mostly Amazon. Some people felt that toys need to be experienced and would thus not be bought online in large numbers, this proved to be false. A child can see a toys at a friends house and then ask his parents to buy it for him, thus he has already experienced it and the parents job is to find it at the lowest price available. Toys R us did try to get into the online game but they were too late.

There were other issues such as being overleveraged but the main failing was not being able to compete resulting in revenues dropping. So take a look at your industry and consider whether you are keeping up with the date with all the happenings in your industry?